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Estimating the Value Obtained from Using a Software Service Platform

Author

Listed:
  • Netsanet Haile

    () (College of Engineering, Seoul National University)

  • Jorn Altmann

    () (College of Engineering, Seoul National University)

Abstract

Service markets allow users to discover, purchase, and utilize services offered on a specific platform. As service platforms grow in number of users and variety of offerings, it raises the question of whether this phenomenon continues to benefit users. Based on a literature review, the paper identifies usability, service variety, and the number of personal connections accessible over the service platform as major determinants that contribute to the value to users. Based on survey data on the behavior of mobile service users, the relationship between user value and the determinants is analyzed and estimated. The results show positive correlations between all three determinants and the value. Using regressions, we estimate how much these determinates contribute to the user value. Mobile service users are satisfied with the usability of services of their chosen platforms, although the impact on the user value is the lowest. Users benefit the most from an increase in the number of their personal connections and the number of services they use.

Suggested Citation

  • Netsanet Haile & Jorn Altmann, 2013. "Estimating the Value Obtained from Using a Software Service Platform," TEMEP Discussion Papers 2013105, Seoul National University; Technology Management, Economics, and Policy Program (TEMEP), revised Aug 2013.
  • Handle: RePEc:snv:dp2009:2013105
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    File URL: ftp://147.46.237.98/DP-105.pdf
    File Function: First version, 2013
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    References listed on IDEAS

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    1. Joseph Farrell & Garth Saloner, 1985. "Standardization, Compatibility, and Innovation," RAND Journal of Economics, The RAND Corporation, vol. 16(1), pages 70-83, Spring.
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    12. Adam M. Brandenburger & Harborne W. Stuart, 1996. "Value-based Business Strategy," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 5(1), pages 5-24, March.
    13. Jeffrey Rohlfs, 1974. "A Theory of Interdependent Demand for a Communications Service," Bell Journal of Economics, The RAND Corporation, vol. 5(1), pages 16-37, Spring.
    14. Selam Abrham Gebregiorgis & Jorn Altmann, 2012. "IT Service Platforms: Their Value Creation Model and the Impact of their Level of Openness on their Adoption," TEMEP Discussion Papers 201295, Seoul National University; Technology Management, Economics, and Policy Program (TEMEP), revised Jun 2012.
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    Citations

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    Cited by:

    1. Kibae Kim & Jörn Altmann & Sodam Baek, 2015. "Role of Platform Providers in Software Ecosystems," TEMEP Discussion Papers 2015120, Seoul National University; Technology Management, Economics, and Policy Program (TEMEP), revised Jan 2015.
    2. Netsanet Haile & Jörn Altmann, 2016. "Structural analysis of value creation in software service platforms," Electronic Markets, Springer;IIM University of St. Gallen, vol. 26(2), pages 129-142, May.
    3. Netsanet Haile & Jörn Altmann, 2017. "Evaluating Investments in Portability and Interoperability between Software Service Platforms," TEMEP Discussion Papers 2017136, Seoul National University; Technology Management, Economics, and Policy Program (TEMEP), revised May 2017.
    4. Baseem Al-athwari & Jorn Altmann, 2015. "Utility-Based Smartphone Energy Consumption Optimization for Cloud-Based and On-Device Application Uses," TEMEP Discussion Papers 2015125, Seoul National University; Technology Management, Economics, and Policy Program (TEMEP), revised Nov 2015.
    5. Kibae Kim & Songhee Kang & Jorn Altmann, 2014. "Cloud Goliath Versus a Federation of Cloud Davids: Survey of Economic Theories on Cloud Federation," TEMEP Discussion Papers 2014117, Seoul National University; Technology Management, Economics, and Policy Program (TEMEP), revised Jul 2014.
    6. Netsanet Haile & Jorn Altmann, 2015. "Risk-Benefit-Mediated Impact of Determinants on the Adoption of Cloud Federation," TEMEP Discussion Papers 2015122, Seoul National University; Technology Management, Economics, and Policy Program (TEMEP), revised May 2015.
    7. Netsanet Haile & Jorn Altmann, 2015. "Value Creation in Software Service Platforms," TEMEP Discussion Papers 2015123, Seoul National University; Technology Management, Economics, and Policy Program (TEMEP), revised Sep 2015.

    More about this item

    Keywords

    Network Effect Theory; UTAUT; Value Creation; Service Platforms; Survey; Multiple Regression.;

    JEL classification:

    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • C42 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Survey Methods
    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • C88 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Other Computer Software
    • D46 - Microeconomics - - Market Structure, Pricing, and Design - - - Value Theory
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
    • M15 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - IT Management
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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